Chapter 9 Global Inequality

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1 Chapter 9 Global Inequality“A world where some live in comfort and plenty, while half of the human race lives on less than $2 a day, is neither just, nor stable.” — President Bush

2 Quotes“Almost half the world’s population lives on less than two dollars a day, yet even this statistic fails to capture the humiliation, powerlessness and brutal hardship that is the daily lot of the world’s poor.” Koffi Anan, UN Secretary General“Today, across the world, 1.3 billion people live on less than one dollar a day; 3 billion live on under two dollars a day; 1.3 billion have no access to clean water; 3 billion have no access to sanitation; 2 billion have no access to electricity.” James Wolfenson, The Other Crisis, World Bank, October 1998

3 Global Inequality: Differences between CountriesGlobal Inequality – The systematic differences in wealth and power that exist between countriesIndicators of Economic Development –GDP – A country’s yearly output of goods and services per personThree economic classes as determined by the World Bank -- low, middle, and high. (macro national level)

4 Global Inequality: Differences between CountriesHigh Income CountriesGDP of $9,266 per personGenerally those first to industrializeAccount for only 15% of the world’s populationLay claim to 79% of the world’s annual output of wealth

5 Global Inequality: Differences between CountriesMiddle-Income CountriesGDP of $756 - $9,265 per personMost began to industrialize late in the 20th century.Includes 45% of the world’s populationOnly accounts for 18% of the annual output of wealth

6 Global Inequality: Differences between CountriesLow Income CountriesGDP under $755 per personMostly agricultural economies that have only recently began to industrializeAccounts for 37% of the world’s populationProduces only 3% of the annual output of wealth

7 Global Inequality: Differences between CountriesThe Rich get Richer, the Poor get PoorerFrom 1988 to 1999, average GDP rose 28% in low-income countries and 51% in high-income countries, widening the gap.Average person in high-income country earned $25,730, compared to $410 in a low-income country.1.5 Billion People, ¼ of the world’s population lives in poverty.

8 Global Inequality: Why it Matters to YouRapid globalization of capitalist economy could produce:Positive OutlookLarge, global corporations with workers everywhere competing at a global wageLeveling out of average incomeDurkhiem

9 Global InequalityNegative OutlookPolarization between those who benefit from global economy and those who don’tCould fuel conflict between ethnic groups and even nationsMarxPostcolonialism studiesCritical Race studies

10 Global Inequality: Why it Matters to YouThe Technology GapGap continues to widen between technologically enabled countries and those without technology

11 Global Inequality: Why it Matters to YouWhat can be done ?Cost of eradicating lethal infectious disease in poor countries would be only $10 billion a year -- less than $15 from each person living in a high-income country.The Singer Solution to World Poverty By PETER SINGER15% of incomeBy his calculation, $200 in donations would help a sickly 2-year-old transform into a healthy 6-year-old — offering safe passage through childhood's most dangerous years.

12 Global Inequality: Why it Matters to YouIncreased funding from high-income countries for scientific and technological researchWorld Bank provides $60 million per year to poor countries for research; major pharmaceutical company Merck spends $2.1 billion alone.

14 Global Inequality: Life In Rich and Poor CountriesHealthHigh-income countries are generally more healthy then low-income countries.Low-income countries often have little or no health care facilities.Poor countries have little sanitation, polluted water and run a higher risk of catching infectious diseases.

15 Global Inequality: Life In Rich and Poor CountriesHealthEvery year 10.9 million children under the age of five die; 60 percent of those deaths are a result of hunger.Every year another 17 million children are born with low birth weight stemming from the inadequate nutrition of their mothers (United Nations World Food Programme [UN WFP] 2004). Infants are 11 times more likely to die at birth in low-income countries then in high-income countries.Children often die from illnesses readily treated in wealthier countries.

17 Global Inequality: Life In Rich and Poor CountriesDuring the past 30 years improvements have been made in most of the middle-income and some of the low-income countries.Throughout the world, infant mortality has been cut in half and the average life expectancy has increased by ten years or more.

18 Global Inequality: Life In Rich and Poor CountriesHunger, Malnutrition and Famine-More than three-quarters of all malnourished children under the age of five in the world’s low- and middle-income countries live in countries that actually produce a food surplus.-Most hunger and famine are the result of natural and social forces.-Their malnutrition isn’t directly related to their countries wealth.

19 Life in Rich & Poor Countries: A ComparisonSlide 19Life in Rich & Poor Countries: A ComparisonPeople in high-income countries are far healthier, having a higher level of education & literacy than their counterparts in low-income countries.Main sources: Hunger, malnutrition & famineOf the world’s hungry, 200 million are children under five years of age.In 1997, each person in low-income countries consumed on average only a tenth as much energy as did his or her counterparts in high-income countries.People in high-income countries are far healthier than their counterparts in low-income countries.Hunger, malnutrition, and famine are major global sources of poor health.Of the world's hungry, 200 million are children under five years of age (World Food Program study).People in high-income countries have a far higher level of education and literacy than their counterparts in low-income countries.In 1997, each person in low-income countries consumed on average only a tenth as much energy as did his or her counterparts in high-income countries.

21 Theories of Global InequalitySlide 21Theories of Global InequalityMarket-oriented theory—free market, less government interventionDependency theory—the exploitation of the wealthy countries & the multinational corporations on the poor countriesWorld-system theory--core, semiperiphery & periphery countries.State-centered development theory—active role of governmentMarket-oriented theory-- the best possible economic consequences will result if individuals are free, uninhibited by any form of governmental constraint, to make their own economic decisions. Modernization theory argues that cultural and institutional barriers to development explain the poverty of low-income societies.Dependency theory--the poverty of low-income countries stems from their exploitation by wealthy countries and the multinational corporations that are based in wealthy countries.Dependency development theory--under certain circumstances, poor countries can still develop economically, although only in ways shaped by their reliance on the wealthier countries.World-system theory--the world capitalist economic system must be understood as a single unit, not in terms of individual countries. The theory divides the world's economic systems into core, semiperiphery, and periphery countries.State-centered development theory--appropriate government policies do not interfere with economic development, but, rather, can plan a key role in bringing it about.

22 Theories of Global InequalityMarket-Oriented TheoriesModernized theoryThese theories assume that the best possible economic consequences will result if individuals are free, uninhibited by any form of government constraint to make their own economic decisions. Unrestricted capitalism, if allowed to develop fully, is said to be the avenue to economic growth.

23 Theories of Global InequalityHow can low-income countries break out of poverty?Traditional StageTake off to economic growthDrive to Technological MaturityHigh Mass ConsumptionNeoliberalism, argues that free-market forces, achieved by minimizing governmental restrictions on business, provide the only route to growth.

24 Problems Tend to blame countries/population for their povertyAssimilationist

25 Theories of Global InequalityDependency TheoryArgue that the poverty of low-income counties stems from their exploitation by wealthy countries and the multinational corporations that are based in wealthy countries.Started under colonialismThe Foundations of Third World Poverty- Ibister

27 Global Inequality: Theories of Global InequalityWorld Systems TheoryArgues that the world capitalist economic system is not merely a collection of independent countries engaged in diplomatic and economic relations with one another but rather must be understood as a single unit instead of as individual countries. (macro approach)

28 Global Inequality: Theories of Global InequalityA world market for goods and laborThe division of population into different economic classes, particularly capitalists and workersAn international system of formal and informal political relations among the most powerful countries, whose competition with one another helps shape the world economy

31 Global Inequality: Theories of Global InequalityState-Centered TheoryArgue that appropriate government policies do not interfere with economic development but rather can play a key role in bringing it about.i.e. social services programs

32 Author’s Favorite?Interesting that they point out no problems with this theory.Why do people follow the state’s model? Government repression.Most theories are better if used in conjunction with other theories.Multinational corporationsOther ideas?

33 Globalization & Global Economic InequalityWhat will be the future direction of the impact of rapid globalization on global inequality?On the one hand, as a result of rapid globalization, our world may be dominated by large, global corporations, with workers everywhere competing with one another at a global wage. This will lead to some leveling out of wages throughout the world and thus reduces global inequality.On the other hand, global economic growth has slowed, and many of the once-promising economies of Asia now seem to be in trouble. Also, the Russia economy, in its move from socialism to capitalism, has made many Russians much poorer than ever.

34 Zero Population GrowthOverpopulation threatens the quality of life for people everywhere. Population Connection is the national grassroots population organization that educates young people and advocates progressive action to stabilize world population at a level that can be sustained by Earth's resources.

35 Sierra Club Sierra Club Population PoliciesPopulation and the EnvironmentThe "population explosion" has severely disturbed the ecological relationships between human beings and the environment. It has caused an increasing scarcity of wilderness and wildlife and has impaired the beauty of whole regions, as well as reducing the standards and the quality of living. In recognition of the growing magnitude of this conservation issue, the Sierra Club supports a greatly increased program of education on the need for population control.

36 ProblemContinued population growth is foremost among the factors aggravating deforestation, wildlife extinction, climate change and other critical environmental and social problems. It also erodes democratic government, multiplies urban problems, consumes agricultural land, increases volumes of waste, heightens competition for scarce resources and threatens the aspirations of the poor for a better life.

37 SolutionThe only acceptable solution to the population problem is through expanding educational, advocacy and service efforts that lower birth rates. Rather than support a larger population at a poorer level, we believe it is preferable to support a smaller population at adequate standards of living.

38 ConsumptionBecause the United States is the chief consumer of the world's resources, slowing its population growth is disproportionately important for protecting the global environment. Because the United States has a major influence on international political, economic and military affairs, reshaping its policies is important for the success of international efforts to slow population growth.

40 IssueThose predicting an overpopulation disaster were right about one thing – the world’s population increased substantially over the last 40 years. In 1970, world population was about 3.7 billion. By the year 2000, world population will top 6 billion – an increase of 62 percent.

41 Issues Although the total world population continues to increase, the rate that the world’s population is growing began declining in the 1970s.